Fashion retailer Ted Baker has reported a 3.2 per cent fall in pre-tax profits to £24.5 million for the six months to August 11 and revealed a £600,000 hit from the collapse of House of Fraser.

The chain - whose founder and chief executive Ray Kelvin started his first store in Glasgow in 1988 - said UK and European retail sales rose 1 per cent or 0.7 per cent higher with exchange rates stripped out.